Economic Globalization By Sasha McGlade-Ferentzy What is Economic Globalization? Economic Globalization is the economic integration between many countries. Its ideal is for there to be one world market, factors of production are used on a world scale. Economic Globalization implies less government involvement in trade between corporations and countries, it is the process of freeing corporations from government restrictions allowing them to operate in many countries. Economic globalization differs from financial globalization as it is concerned with corporations as opposed to the stock market. The most common example of economic globalization applied in the real world is through free trade.
Why is Economic Globalization significant to the world? Economic globalization has been in the process since trade between different countries started, but over the past 50 years it’s been increasing more rapidly then ever before. Economic Globalization benefits corporations by allowing them to operate in other countries. The problem seen with this is that rich corporations operate in poor countries because the labor is cheaper. Sweatshops and call centers in foreign countries are a result of economic globalization. The Environmental effects of economic globalization could potentially be devastating, with trade between countries being free of government restrictions it makes it cheaper for developed countries to grow their produce in developing countries, the transportation of this produce from the developing countries to the developed is very harmful as trucks and planes are the main means of transporting produce (See "Global Warming - Fact or Fiction" for more information on the effects of man made carbon dioxide that these planes and trucks are responsible for making). Many critics of Globalization suggest that if we relied on local economies, we could eliminate unnecessary transportation benefitting the environment. Corporations opening factories in foreign countries can create jobs for thousands of people, but the increase of chain stores and large corporations in the world can take away business from small business, often causing people to lose their jobs. Often the over seas factories do not pay as well as those in the countries the corporations are based in, thus the workers are forced to live in poverty. Globalization and free trade can be seen as a step towards liberty and freedom from the government, however they can also be seen as a step towards corporate control.
View of a sweatshop from above
What are the impacts of Economic Globalization? Foreign direct investment is one of the main ways Economic Globalization progresses. Foreign direct investment is when a corporation from one country invests in operating in another country, this is typically done by building a factory in another country. This is often when sweatshops are established. Nike can be considered the poster company for taking advantage of being able to operate in foreign countries and use of sweatshops. Beifa, a clothing manufacturer making clothes for Wal-Mart, has been caught paying all of it’s 3000 workers in China less then Chinese minimum wage and violating overtime policies. The United States Housing Market correction, United States housing bubble and sub prime mortgage crisis cause the U.S. to plunge into recession with the rest of the world following. In Papua New Guinea, $48 million dollars was spent on highways to allow timber to be harvested and brought to the export market. Not only is this causing deforestation, but the transport of timber is not an ecological method of transportation. The united states also budgets about 80 billion dollars a year to build highways for the transportation of goods, these highways increase urban sprawl and negatively effect the environment in many ways.
The Silk Road can be considered the first step towards economic globalization as it allowed for traders to trade in foreign countries.
1957 - The European Economic Community is formed, making all countries that were members closer to being one economy 1987 – The Canada-United states free trade agreement is formed elimination trade restrictions between Canada and the USA. 1993 – The European union is formed; the European Economic Community becomes a part of the EU. 1994 – The North American Free Trade Agreement is formed allowing free trade between the U.S., Canada and Mexico. As of 2009 16 European countries use the euro making them virtually all one economy.
There are more the 5 thousand Wal-Mart locations in the world.
There are more then 15 thousand Starbucks locations in the world.
There are more the 25 thousand Subway restaurants in the world.
There are more then 30 thousand McDonalds locations in the world.
7 Eleven is the worlds largest chain with about 1000 more locations then McDonals.
In the united states you are never more then 60 miles away from a Wal-Mart.
McDonals operates in over 160 countries
Related subjects Colonialism greatly progressed globalization, for example in India production of cloth decreased as they imported cloth from Britain, the colonial power in charge at the time. Corporate social responsibilityis the responsibility of a corporation to not abuse economic globalization by mistreating workers in foreign countries. Economic Globalization often causes economies to suffer, often a side effect of this is hyperinflation. Opinion on weather Economic Globalization is a positive or negative phenomenon heavily relies on one’s paradigm; generally people of the right side of the spectrum are for economic globalization and people on the left oppose it. When corporations take control of necessities such as water, often the necessities are sparse for the poor. This can cause a water disparityin many areas of the world and on a global scale.
Economic Globalization is clearly explained in the web-documentary entitled "The Story of Stuff" by Anne Leonard. The issue of transporting material goods into other countries to be put into stores is described in the production part of the Materials Economy process.
By Sasha McGlade-Ferentzy
What is Economic Globalization?
Economic Globalization is the economic integration between many countries. Its ideal is for there to be one world market, factors of production are used on a world scale. Economic Globalization implies less government involvement in trade between corporations and countries, it is the process of freeing corporations from government restrictions allowing them to operate in many countries. Economic globalization differs from financial globalization as it is concerned with corporations as opposed to the stock market. The most common example of economic globalization applied in the real world is through free trade.
Why is Economic Globalization significant to the world?
Economic globalization has been in the process since trade between different countries started, but over the past 50 years it’s been increasing more rapidly then ever before. Economic Globalization benefits corporations by allowing them to operate in other countries. The problem seen with this is that rich corporations operate in poor countries because the labor is cheaper. Sweatshops and call centers in foreign countries are a result of economic globalization. The Environmental effects of economic globalization could potentially be devastating, with trade between countries being free of government restrictions it makes it cheaper for developed countries to grow their produce in developing countries, the transportation of this produce from the developing countries to the developed is very harmful as trucks and planes are the main means of transporting produce (See "Global Warming - Fact or Fiction" for more information on the effects of man made carbon dioxide that these planes and trucks are responsible for making). Many critics of Globalization suggest that if we relied on local economies, we could eliminate unnecessary transportation benefitting the environment. Corporations opening factories in foreign countries can create jobs for thousands of people, but the increase of chain stores and large corporations in the world can take away business from small business, often causing people to lose their jobs. Often the over seas factories do not pay as well as those in the countries the corporations are based in, thus the workers are forced to live in poverty. Globalization and free trade can be seen as a step towards liberty and freedom from the government, however they can also be seen as a step towards corporate control.
What are the impacts of Economic Globalization?
Foreign direct investment is one of the main ways Economic Globalization progresses. Foreign direct investment is when a corporation from one country invests in operating in another country, this is typically done by building a factory in another country. This is often when sweatshops are established.
Nike can be considered the poster company for taking advantage of being able to operate in foreign countries and use of sweatshops.
Beifa, a clothing manufacturer making clothes for Wal-Mart, has been caught paying all of it’s 3000 workers in China less then Chinese minimum wage and violating overtime policies.
The United States Housing Market correction, United States housing bubble and sub prime mortgage crisis cause the U.S. to plunge into recession with the rest of the world following.
In Papua New Guinea, $48 million dollars was spent on highways to allow timber to be harvested and brought to the export market. Not only is this causing deforestation, but the transport of timber is not an ecological method of transportation. The united states also budgets about 80 billion dollars a year to build highways for the transportation of goods, these highways increase urban sprawl and negatively effect the environment in many ways.
The Silk Road can be considered the first step towards economic globalization as it allowed for traders to trade in foreign countries.
1957 - The European Economic Community is formed, making all countries that were members closer to being one economy
1987 – The Canada-United states free trade agreement is formed elimination trade restrictions between Canada and the USA.
1993 – The European union is formed; the European Economic Community becomes a part of the EU.
1994 – The North American Free Trade Agreement is formed allowing free trade between the U.S., Canada and Mexico.
As of 2009 16 European countries use the euro making them virtually all one economy.
There are more the 5 thousand Wal-Mart locations in the world.
There are more then 15 thousand Starbucks locations in the world.
There are more the 25 thousand Subway restaurants in the world.
There are more then 30 thousand McDonalds locations in the world.
7 Eleven is the worlds largest chain with about 1000 more locations then McDonals.
In the united states you are never more then 60 miles away from a Wal-Mart.
Related subjects
Colonialism greatly progressed globalization, for example in India production of cloth decreased as they imported cloth from Britain, the colonial power in charge at the time.
Corporate social responsibilityis the responsibility of a corporation to not abuse economic globalization by mistreating workers in foreign countries.
Economic Globalization often causes economies to suffer, often a side effect of this is hyperinflation.
Opinion on weather Economic Globalization is a positive or negative phenomenon heavily relies on one’s paradigm; generally people of the right side of the spectrum are for economic globalization and people on the left oppose it.
When corporations take control of necessities such as water, often the necessities are sparse for the poor. This can cause a water disparityin many areas of the world and on a global scale.
Economic Globalization is clearly explained in the web-documentary entitled "The Story of Stuff" by Anne Leonard. The issue of transporting material goods into other countries to be put into stores is described in the production part of the Materials Economy process.